Mortgage rates headed down - time to refi?

I was thinking about it last week and got a rate quote. Now I'm really thinking about it and hoping for a better quote.
 
If you can find a 4% mortgage at any term, let us know. You can always step up your monthly payment and make it any term you want. - ERD50
 
Nords said:
Tell me about it.

After decrypting all the fine print, NFCU is offering a zero-points zero-fee 30-year fixed at 5.5%. PenFed's a bit higher at 5.75% (for now). We refinanced two years ago for 5.375%.

Remember when mortgage rates were the lowest in over 40 years and we'd never see that again in our lifetimes?!? This would be our fifth refinance in eight years, but the lower payments have paid all the refinancing expenses.

If either of those CUs made us an offer we'd probably take it. Heck, we'd even restart the 30-year clock. If they think I can pay a mortgage until I'm 77 years old then I think so too...
Click to expand...

Nords, you make a good point. As long as folks realize you are starting over with a NEW amortization, and the numbers works, then ok. Also, folks don't realize that your only choices are 10,15,25,30 years. I re-fied into a 25 and a 19 year mortgage over the years........;)
 
theHundt said:
The penfed 5/5 just dropped to 4.750.
Click to expand...

And it may well continue dropping. SOmewhere around 4% or a smidge higher, I will start getting real interested in the details of this loan.
 
Why get an ARM?

Pen Fed has 15yr fixed at 4.625 with zero points! :eek: $1500 closing.
 
JohnDoe said:
Why get an ARM?

Pen Fed has 15yr fixed at 4.625 with zero points! :eek: $1500 closing.
Click to expand...

That's pretty low. Not low enough for me to bother refinancing, but pretty low.

Personally, I have decided that I don't want a 15 year mortgage any more and that I probably would have been better off with a 30 of some sort. So if I do refi, it will not be into another 15 year loan unless I can get something like a 4% rate on it.
 
I'm currently 6 yrs into a 30yr fixed at 6.5%. ouch

I want to refi into a fixed 15yr. When I saw 4.625 I peed my pants. I don't know if I want to wait for much lower than that. I've been waiting since 5.625 and hit my target of 4.75.

I'm calling my local guy to see if he can match or beat. Roll the closing costs and pay off in 11 years, I should save about 20 G's.
 
I would likely only consider a refi if I could trim > 1% off of the loan. I would only want a 10 yr mortgage. The last time we refinanced, I trimmed 1.25% off of the loan. The payback on the closing costs (all the various fees involved) the last time was about 18 months (before we broke even).
Click to expand...

That's the same situation I'm looking at. Is that a decent payoff period? I would be going from a 20 yr @ 6.5% to a 15yr 4.75%.

I keep thinking rates will fall a little more (.25-.50) over the next 60 days or so, but I really have no idea of course. If rates do drop another .50%, and if I keep the house another 10 years, that would cost me about $13,900 over 10 years, or about $7000 in today's dollars.

What are the odds fixed rates will fall another .50% or more:confused:??
 
Wed 23 Jan, the day after the Fed's rate drop, PenFed has dropped their 30-year fixed mortgage rate to 5.5% and NFCU has dropped theirs to 5.375%. NFCU has now matched our current mortgage rate.

brewer12345 said:
And it may well continue dropping. SOmewhere around 4% or a smidge higher, I will start getting real interested in the details of this loan.
Click to expand...
No closing costs, either...
 
I just pulled the trigger today to refi my 30 year. Got 5.5% with no closing costs (or anything out of pocket)
 
saluki9 said:
I just pulled the trigger today to refi my 30 year. Got 5.5% with no closing costs (or anything out of pocket)
Click to expand...

I also pulled the triggger on 5.375% REFI with NFCU on a 30 year fixed with no C/C. Also payed the extra to re-lock one time in 30 days if the rates decide to dip even lower.
 
R Wood said:
PENFED has 4.99% on HEL 15 year Zero Closing Costs. Membership, if not otherwise qualified, cost $20.
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The 4.99% deal at Penfed is a max of 10 years, not 15.

The 15 year rate on the HEL is 5.99% at the moment.

2Cor521
 
One other thought I had on this subject.

In a falling interest rate environment, you can call your current lender and they may be willing to do a rate modification to keep your business. I did this successfully once before with USAA, I believe it was. They send you a few pieces of paper, you sign and send back, and you get a lower rate without a refi.

2Cor521
Looking hard at that PenFed 15 year note...
 
twaddle said:
This is from the PenFed link I gave above:

No Closing Costs: Fees not covered include, but are not limited to, title costs, recording fees, survey or pest inspection costs, escrow reserves and interest due until first payment. Pentagon Federal Credit Union to pay settlement fee only if the loan is closed by our preferred provider. If the loan is withdrawn or does not close, all third-party fees incurred will become the responsibility of the applicant. Other terms and conditions may apply, please contact a mortgage representative for details. Different terms and conditions may apply in Puerto Rico.
Click to expand...

theHundt said:
My assumption was that most of those fees are associated with a home purchase and not a refinance. What if any of those things would be required by a refi?

Forgive my ignorance here, I have never done a refinance before.
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I'm in the same boat. In a typical refinance should the only associated costs be for the loan paperwork & due dilligence?

I'm sitting on a 30yr 6.5% with 24yrs left. DW and I are unsure if we're going to stay or move within the next 3-5 years. If closing costs are minimal it would make sense to refi, otherwise not.
 
jblack said:
I'm in the same boat. In a typical refinance should the only associated costs be for the loan paperwork & due dilligence?

I'm sitting on a 30yr 6.5% with 24yrs left. DW and I are unsure if we're going to stay or move within the next 3-5 years. If closing costs are minimal it would make sense to refi, otherwise not.
Click to expand...

Title insurance, recording fees, mortgage tax (if any), attorney's fees, fee fees, etc. Depends on the lender and your location.
 
15-Year Fixed Jumbo Loan
Rate Apr
4.7500.000 4.750
4.6250.375 4.681
4.5000.875 4.632
10-Year Fixed Jumbo Loan
4.8750.000 4.875
4.7500.125 4.777
4.6250.625 4.760

Is it normal for the 15 year fixed to be less than the 10 year? This is from the Pen Fed website..........
 
brewer12345 said:
Title insurance, recording fees, mortgage tax (if any), attorney's fees, fee fees, etc. Depends on the lender and your location.
Click to expand...

That's the $64,000 question. Or, $1,500 question, Or $4,000.

The last house we bought was several thousand in fees. Mostly paid by the seller (which also varies by the deal/region). Chase guesses $4,000. Others guess $1,500. What's a good way to estimate this? Anyone have a reliable way to figure this out. Call the title company?

JohnDoe said:
Why get an ARM?

Pen Fed has 15yr fixed at 4.625 with zero points! :eek: $1500 closing.
Click to expand...

When someone says "no closing costs" is that the fees/etc. charged by Penfed/CU/bank ? Or are you just rolling this into the loan?

-CC
 
CCdaCE said:
That's the $64,000 question. Or, $1,500 question, Or $4,000.

The last house I bought was several thousand. Chase guesses $4,000. Others guess $1,500. What's a good way to estimate this? Anyone have a reliable way to figure this out. Call the title company?

-CC
Click to expand...

For a sanity check, you can go to e-loan and stick in your particulars. They guarantee closing costs will be accurate or they will eat the difference (or at least they used to), so you get a firm number rather than an animal, vegetable, or mineral estimate.
 
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